RHIM - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.6

📈 Positive

• 📘 Price is trading near DMA 50 (₹465) and DMA 200 (₹485), indicating consolidation with breakout potential.
• 📈 RSI at 59.8 and MACD at 2.89 suggest neutral-to-bullish momentum.
• 📉 Very low debt-to-equity ratio of 0.01 reflects strong financial discipline.
• 📈 PAT improved QoQ from ₹36.4 Cr. to ₹46.5 Cr., showing earnings recovery.
• 📈 FII holding increased slightly (+0.01%), indicating stable foreign sentiment.

⚠️ Limitation

• 📉 P/E of 52.3 vs industry P/E of 39.9 signals overvaluation.
• 📉 PEG ratio of -8.98 suggests negative growth outlook.
• 📉 ROCE (7.71%) and ROE (5.62%) are modest, indicating average capital efficiency.
• 📉 Volume (1.75 lakh) significantly below 1-week average (4.18 lakh), showing weak participation.
• 📉 DII holding declined by 0.15%, reflecting cautious domestic sentiment.
• 📉 Qtr Profit Var of -43.0% indicates earnings volatility.

🚫 Company Negative News

• 📉 Analysts have flagged concerns over margin pressure and weak demand in refractory materials impacting profitability.

✅ Company Positive News

• 🏭 RHIM continues to benefit from its global footprint and diversified industrial customer base.
• 📈 Recent PAT improvement suggests operational recovery despite sector headwinds.

🏦 Industry

• 🔥 Operates in the refractory and industrial materials sector, which is cyclical and tied to steel and cement demand.
• 📊 Industry P/E of 39.9 reflects moderate valuation and growth expectations.

🧾 Conclusion

• 📉 RHIM shows signs of technical stability and earnings recovery but faces valuation and volume concerns.
• 📍 Optimal entry: ₹460–₹470 (near DMA 50 and support zone).
• 🚪 Exit if held: ₹490–₹500 (near DMA 200 and resistance) unless momentum strengthens.
• ⚠️ Suitable for swing trading with moderate risk and close monitoring of volume and earnings trends.

I can also compare RHIM’s swing setup with peers like IFGL Refractories or Vesuvius India to help refine your trade timing.